Tuesday, July 26 th, st HALF RESULTS

Transcription

1 Tuesday, July 26 th, st HALF RESULTS 2011

2 1 st HALF RESULTS 2011 Highlights Business review Financial results Outlook 2

3 Morocco: strengthening growth outlook Economy in Morocco (MADm) 5.2% 5.0% 4.0% Source : Ministry of Finance Value GDP growth GDP estimated growth of 5,0% for The domestic demand represents 2.7 points of GDP growth Salaries raise in many companies and the public service Slight rise of inflation 3

4 Morocco: lower prices stimulate growth of customer base and usage Sustained growth in the Mobile market 75% 24 Q1-09 Q1-10 Q1-11 Mobile market (m customers) Penetration Source : ANRT 86% +23% 105% Growth of the Mobile customer base in an intensely competitive environment Growth in Multiple Sim penetration (estimated at 25% of customer base) Prices and usages evolution in the Mobile market % +21% Significantly lower prices stimulate usage Source : ANRT Monthly outbound traffic per customer (min) Blended price per minute(mad) 4

5 Sub-saharan Africa: promising growth outlook Growing mobile penetration 77% 89% Q Q % 36% Q Q % 129% Q Q % 53% Q Q MAURITANIA 2011 e Real GDP growth: +6.0% Mobile market: +19% at 2.9 million customers (Q1-2011) Strong depreciation of MRO: -8.0% in H vs. H Commercial launch of Chinguitel GSM/UMTS network Taxation of international inbound traffic BURKINA FASO 2011 e Real GDP growth: +5.5% Social disorder with disturbance of the activity Intense competitive environment: the mobile customer base still growing by 45% at 6 million customers (Q1-2011) GABON 2011 e Real GDP growth: +5.6% Intense competitive environment in a market of 4 operators Mobile customer base: +17%, at million customers (Q1-2011) MALI 2011 e Real GDP growth: +6.0% Mobile customer base: +36%, at 7.5 million customers (Q1-2011) Tender process for a 3 rd mobile license Source : IMF / Dataxis 5

6 Group customer base: growth driven by sub-saharan affiliates (In million) +16.5% 27.5 Sub-saharan Africa % % 18.8 Morocco H H

7 Solid fundamentals H Maroc Telecom Group MADm Chg*. Revenues 15, % Operating Income 6, % Operating margin 39.8% -3.2pt Net earnings Group-share 3, % Operating Cash Flow 4, % * Data for the year 2010 were restated after a material misstatement was identified in the financial statements concerning distributor commissions paid to Onatel. This restatement lowered revenues by MAD 18.9 million, while earnings from operations before depreciation and amortization were affected negatively, by MAD 22.3 million, compared with the data published for H

8 1 st HALF RESULTS 2011 Highlights Business review Financial results Outlook 8

9 Highlights Mobile in Morocco LOWER PRICES «Heure Jawal» promotion: 1h for MAD 29 valid 7days evening & WE Permanent Bonus for small top-up (MAD 5 to 30) First 5 seconds access to voic for free EXTENSION OF THE LARGEST DISTRIBUTION NETWORK IN MOROCCO 356 owned stores among which 5 new openings & 9 restored agencies KEEPING THE BEST QoS Coverage improvement G BTS to G BTS to Strong increase of Voice traffic +84% in 2G +341% in 3G SEGMENTATION Arriyadi (sport) plan : 1h/300 SMS/3 sport channels at MAD 99 Universal Music plan: 1h/300 SMS/4 MTV channels at MAD 99 RETENTION Success of Heure Jawal Promotion : 18m activations in H Incentive to prepaid-postpaid migration: 50% of postpaid acquisitions INNOVATION Mobile Internet: prepaid Voice + Data plan 9

10 Business review Growth in customer base thanks to churn improvement Mobile customer base (In thousands) 14, ,618 15, ,173 Prepaid +6.9% Postpaid 16, , % + 5.8% Customer market share Q % Data : ANRT Value Market share* Apr-11 72% *On the basis of outbond traffic revenues Customer base still growing Strong performance of the postpaid segment Blended churn 35.2% 27.4% -5.7 pts 21.7% Churn rate in constant improvement 10

11 Mobile in Morocco Lower price stimulate consumption Blended outgoing usage ; Minute price (Minutes / cust. / month ; MAD/ min) % +22% Good elasticity of usage to lower price Outbound usage Minute price Blended ARPU (MAD / cust. / month) % % -6.6% Good resilience of the ARPU Despite heavy cuts of outbound minute price by 24% Outbound ARPU Inbound ARPU 11

12 Mobile Internet in Morocco 3G Internet customer base and revenue growing fastly 3G Internet customer (Active customers) Market share Q % 44% G customer base 812 Data : ANRT Strong growth of the market share (+12 pts) Launch of 3G internet on prepaid voice mobile plan 3G Internet revenue (MADm) % 152 Very strong increase of 3G internet revenue 3G Internet revenue 12

13 Business review Mobile in Morocco Mobile in Morocco (MADm) 59.6% 60.1% 56.7% -3.5pts -1.0% 9,015 9,519 9, % 5,370 5,722 5,339 Revenues EBITDA EBITDA margin Mobile Revenues and Margin slightly impacted by price cuts 13

14 Highlights Fixed-line & Internet in Morocco PRICE CUTS ADSL Price reduction in ADSL plans of 8 Mbps and more -50% promotion on ADSL & CDMA Packs Fixed-line Price reduction for «phony Tout Temps» Permanent Bonus El Manzil GROWING ADSL CUSTOMER BASE GROWING CORPORATE CUTOMER BASE IP VPN: + 24% Fixed-lines: + 2,7% GROWING INTERNET USAGE ADSL : doubling bandwidth Fixed-line : MT Duo (Double-play) promotion Upgrade of international bandwith capacity to 100 Gbps 14

15 Business review Significant rise in ADSL customer base Fixed line customer base (In thousands) 1,290 1, ~ 1, Market share Q1-11 (1) Excluding limited mobility 98% (1) Source : ANRT Fixed-line customer base remains stable Residential Public telephony Corporate ADSL customer base (In thousands) +10.2% Market share Q % Source : ANRT ADSL* * Including Narrowband and LL ADSL customer base growing significantly, supported by lower prices and enhanced offerings (MT Duo) 15

16 Business review Fixed lines & Internet in Morocco Fixed in Morocco (MADm) 50.3% 48.2% 48.0% -0.2pts -11.0% 4,759 4,312 3,836 2,396 2,077 1, % Revenues EBITDA EBITDA margin Decreasing public telephony due to the competition from Mobile Lower rates for lines leased by Maroc Telecom s Fixed-line activity to the Mobile 16

17 Highlights Sub-saharan Africa MAURITEL Restriction of some «All-net» usage promotions to «on-net» New ADSL offering ranging from 4 to 10 Mbps ONATEL Heavy price cuts: new digressive per-second rate plan «Midi Telmob» GABON TÉLÉCOM New Management New per-second rate plan «One» Strong price cuts in the Mobile H1-10 H % 58%* 1,547 1,827 42% 44%* 1,994 2,796 31% 20%** ** Clen-up of the customer base Source : Dataxis Q vs. Q SOTELMA Customer base multiplied by 2.2 in 1 year Launch of «Duo» double SIM offer: 1 SIM purchased, the 2 nd SIM for free including FCFA credit valid 8 months Extension of network by 152new BTS 26% 1,464 35% 3,284 Mobile cust. base (in thousand) Market share 17

18 Business review Sub-saharan Africa Fixed & Mobile (MADm) 43.0%* 39.6% H % of Group Revenues H H %* 14% 18% 19% 2,625* 2,753* 2,885 % of Group EBITDA H H H * 1,183* 1,143 10% 13% 14% Revenues EBITDA EBITDA margin Increasing contribution of affiliates to the Group Consolidated Results * Data for the years 2009 & 2010 were restated after a material misstatement was identified in the financial statements concerning distributor commissions paid to Onatel. This restatement lowered revenues respectively by MAD 18.9 million and MAD 15,25 million in 2010 and 2009, while earnings from operations before depreciation and amortization were affected negatively, respectively by MAD 22.3 million and MAD 18 million in 2010 and 2009, compared with the data published. 18

19 1 st HALF RESULTS 2011 Highlights Business review Financial results Outlook 19

20 Consolidated income statement In MADm H1 2010* H Chg* Revenues 15,447 15,323 +4,3% -0.8% Operating expenses -6,464-7, % EBITDA 8,982 8, % Slight decline in revenues despite strong price cuts 54,3% % revenues 58.2% 58,8% -3.9pts Operating income 6,645 6, % Margin stayed at high level % revenues 43.0% 39.8% -3.2pt 3,985 Net earning group-share 4, ,3% % revenues 28.8% 26.0% -2.8pts Distribution capacity remains high * Data for the year 2010 were restated after a material misstatement was identified in the financial statements concerning distributor commissions paid to Onatel. This restatement lowered revenues by MAD 18.9 million, while earnings from operations before depreciation and amortization were affected negatively, by MAD 22.3 million, compared with the data published for H

21 Revenues Revenues (MADm) MOROCCO AFFILIATES 15,447* ,323 2,753* Mobile revenues -485 Fixed revenues Mobile+Fixed revenues 2, % 12,763 12, % H Maroc Telecom Sub-saharan affiliates H * Data for the year 2010 were restated after a material misstatement was identified in the financial statements concerning distributor commissions paid to Onatel. This restatement lowered revenues by MAD 18.9 million, while earnings from operations before depreciation and amortization were affected negatively, by MAD 22.3 million, compared with the data published for H

22 EBITDA Consolidated EBITDA (MADm) 8,982* 1,183* ,317 1, % 7,799 Maroc Telecom EBITDA affiliates EBITDA 7, % H Maroc Telecom Sub-saharan affiliates H EBITDA Morocco (MADm) 7,799 Revenues -218 Interco -184 Universal Service -90 Other OPEX , % H H * Data for the year 2010 were restated after a material misstatement was identified in the financial statements concerning distributor commissions paid to Onatel. This restatement lowered revenues by MAD 18.9 million, while earnings from operations before depreciation and amortization were affected negatively, by MAD 22.3 million, compared with the data published for H

23 Investments (In MADm) Sub-saharan Africa 2,404 1,091 2, Fixed & Internet Morocco Mobile Morocco H H Slight increase in investments forecasted for the FY

24 Cash Flow Statement In MADm H1 10* H1 11 Chg* EBITDA 8,982 8, % Maroc Telecom 7,799 7, % Sub-saharan Africa 1,183 1, % CAPEX 2, % Maroc Telecom Sub-saharan Africa 1,313 1,091 2,009 1, % -28% CAPEX represent 13% of revenues Change in Working Capital 1,090 1, % Significant improvement expected in H2 Cash Flow from 5,510 4, % 2011 operations Maroc Telecom 5,148 4, % Sub-saharan Africa % After payment of Net Debt 8,905 11, % dividend, net debt represents 0.7 x Maroc Telecom 8,464 10, % 2011 annualised Sub-saharan Africa ns EBITDA * Data for the year 2010 were restated after a material misstatement was identified in the financial statements concerning distributor commissions paid to Onatel. This restatement lowered revenues by MAD 18.9 million, while earnings from operations before depreciation and amortization were affected negatively, by MAD 22.3 million, compared with the data published for H

25 1 st HALF RESULTS 2011 Highlights Business review Financial results Outlook 25

26 Outlook for 2011 Revised outlook for 2011 Slight decline in revenues in 2011 In Morocco: price cuts and rise in Mobile usage; decline of Fixed-line activity Sub-saharan Africa: steady growth of Mobile Operating Margin comparable to that of H Morocco: lower interconnection tariffs and fixed costs control Sub-saharan Africa: fixed costs optimization 26

27 Strategic thrusts Investments Synergies Innovation Maintaining Leadership Sustainable development International expansion High margins Quality of service Distribution Innovation Opening up of isolated areas Reduction of Digital Divide Support for culture, sport, charities and human rights Network expansion Growth of customer base and usage New acquisition opportunities Cost control and optimization in Morocco and Sub- Saharan affiliates 27

28 1 st HALF RESULTS 2011 Appendices 28

29 Morocco Population GDP Revenue per inhabitant (ppp) Inflation 31.9 million $ 91.7 billion +5.0% in 2011e $ 5,001 in 2011e +1.6% in 2011e In MADm IFRS H H Chg. Revenues (net) 12,763 12, % Mobile 9,519 9, % Fixed et Internet 4,312 3, % EBITDA 7,800 7, % % of revenues 61.1% 57.2% -3.9pts Operating income 6,104 5, % % of revenues 47.8% 44.4% -3.4pts Source : IMF Ministry of Finance Mobile H H Chg. Customers (000) 15,904 16, % ARPU (MAD) % Market share 57% 50%* -7pts Penetration 88.5% 104.8%* +16.3pts Nb of operators Fixed Customers (000) ,234 - Market share** 98% 98%* - Penetration** 4% 4%* - Nb of operators Internet Customers (000) % Source: ANRT * source: ARNT at end of Q ** Excluding limited mobility 29

30 Mauritania Population GDP Revenue per inhabitant (ppp) Inflation 1 MAD = 3.2 million $ 4.4 billion +5.2% in 2011 e $ 1,352 in 2011 e +7.2% in 2011 e MRO depreciation of MRO by 8,0% vs Source : IMF In MADm IFRS H H Chg. Revenues (net) % Mobile Fixed et Internet % EBITDA % % of revenues 50% 44% -5.9pts Operating income % % of revenues 33% 28% -4.5pts Mobile H H Chg. Customers (000) 1,547 1, % ARPU (MAD) % Market share 60% 58%* -2pts Penetration 80% 89%* +9pts Nb of operators Fixed Customers (000) % Market share 50.2% 48.4% -1.8pts Penetration 2.6% 2.7% - Nb of operators Internet Customers (000) % Source: Dataxis * Data at end Q

31 Burkina Faso Population GDP Revenue per inhabitant (ppp) Inflation 1 MAD = 15 million $ 9.6 billion +5.5% in 2011 e $ 639 in 2011 e +0.4% in 2011 e FCFA appreciation of FCFA by 0.5% vs Source : IMF In MADm IFRS H1 2010* H Chg.* Revenues (net) % Mobile % Fixed et Internet % EBITDA % % of revenues 50% 37% -13.6pts Operating income % % of revenues 28% 10% -18pts * On the basis of 2010 restated accounts Mobile H H Chg Customers (000) % ARPU (MAD) % Market share 42% 44%* +2pts Penetration 29% 36%* +7pts Nb of operators Fixed Customers (000) % Market share 100% 100% - Penetration 1.0% 1.0% - Nb of operators Internet 31 Customers (000) % Source: Dataxis * Data at end Q

32 Gabon Population GDP Revenue per inhabitant (ppp) 1.5 million $ 16.7 billion +5.6% in 2011 e $ 11,046 in 2011 e In MADm IFRS H H Chg. Revenues (net) % Mobile % Fixed et Internet % EBITDA % % of revenues 32% 30% +2.2pts Operating income % % of revenues 6.6% 2.3% +4.3pts Inflation 1 MAD = +2.3% in 2011 e FCFA appreciation of FCFA by 0.5% vs Source : IMF Mobile H H Chg. Customers (000) % ARPU (MAD) % Market share 31% 20%* -11pts Penetration 124% 149%* +25pts Nb of operators Fixed Customers (000) % Market share 100% 100% - Penetration 2.4% 1.6% - Nb of operators Internet Customers (000) % Source: Dataxis * Data at end Q1 11; operation of customer base reliabilization in Q

33 Mali Population GDP Revenue per inhabitant (ppp) 13.8 million $ 10.7 billion +6.0% in 2011 e $ 777 in 2011 e In MADm IFRS H H Chg. Revenues (net) % Mobile % Fixed et Internet % EBITDA % % of revenues 37% 44% +6.3pt Operating income % of revenues 7.7% 26% +17pts Inflation 1 MAD = +4.5% in 2011 e FCFA appreciation of FCFA by 0.5% vs Source : IMF Mobile H H Chg. Customers (000) % ARPU (MAD) % Market share 26% 35%* +9pts Penetration 40% 53%* +13pts Nb of operators Fixed Customers (000) % Market share 95.0% 95.0% +0pts Penetration 0.6% 0.6% - Nb of operators Internet Customers (000) % Source: Dataxis * Data at end Q1 11 ** Estimated figures 33